sheldonThe main issue plaguing Batu Kawan and the like is the spinners giving a bad name to CPO from the health angle even though it's proven that it's neutral at worst. I consume the cooking oil at home. Obviously the Malaysian eateries use palm oil in their cooking as well. I eat out most of the time and at mid-50s I'm still alive.

Then they pick from the environmental angle. The lobbyists are going all out to paint a negative picture on CPO to probably help the soy industry. It appears that all these so-called good intentions has the same underlying motive - MONEY!

16/07/2017 12:14

sosfinanceThis stock (BKawan) reminds me of Charlie Munger's Daily Journal investment in Well Fargo in 2009, quietly, and ....... the rest is history.

17/07/2017 14:51

sheldonFeel the awesome power of trade blocks - http://www.thestar.com.my/business/business-news/2017/07/17/malaysia-and-indonesia-may-take-eu-plan-to-curb-palm-oil-imports-to-wto/

i alrdy gave warning but still got jokers believe in chief joker @calvintaneng and refuse to acknowledge the signs. best is this @chongyu, claim to have 30 yrs experience in plantation industry but actually he doesnt know much after i probe him on fertilizer component prices.

15/08/2017 20:42

Stock KingdomCalvin, your judgement on palm oil is totally out of way. Not only you don't know how palm oil estates run, you don't know palm oil industry. In fact, you also don't know the relationship between palm oil, soy bean oil, biofuel & crude oil.

DickyMe"Palm oil is a major industry in Southeast Asia. Indonesia and Malaysia employ 3.5 million people to produce 85 per cent of the world’s palm oil with export values exceeding US$40 billion annually."

3.5 million workers but 99% not Malaysians but foreign workers

"With Southeast Asian economies in the balance – especially Indonesia and Malaysia – the fruit producers must address growing concerns about environmental and employee abuses without losing their competitive edge"

Blatant open burning of plantation fields which causes environment pollution, land grabbing which contributes to homelessness and city squatting. and unemployment, when citizens are shoved aside in favour cheap foreign workers.

Toxic greed have met divine intervention and soon palm plantation will follow the fate of rubber.

29/01/2018 10:16

DickyMe"The latest crisis to face the industry’s reputation came this week as European Union lawmakers on Wednesday agreed to draft measures that seek to phase out the use of palm oil as biofuel by 2021. The move sparked fear in smallholders, who account for about 40 per cent of global palm oil production. Hundreds took to the streets in Kuala Lumpur this week to protest against the EU’s changes, saying the decision threatens their livelihoods."

IMPORTANT POINT OF INTEREST

"...draft measures that seek to phase out the use of palm oil as biofuel by 2021. "

29/01/2018 10:24

sheldonI think the underlying motive is partly money. One research said that they should ban butter because the cows that produce the milk which is churned into butter, collectively has a fart that causes massive increases in greenhouse gases.

Would they take such a drastic step to stop consumption and put a lot of farmers into the poor house? No way!!!

sheldonI attended the AGM and came out feeling good about the co. According to the chairman, the Europe ban on palm oil in 2021 is only for the diesel content. They would require all members to vote (uncertain as to whether a unanimous or majority consent required).

Any way there's a lot of vested interest at individual country level including Malaysia buying their goods and countries involved in the production of palm diesel. The following report explains the dynamics and reveal some relevant data. Read em..

Cipta - I prefer that the Co cancels the treasury share & go for a capital reduction. Less shares, the better the ROE & EPS.

17/11/2018 15:02

Ciptacanceling treasury share may not push up the share price since liquidity becomes lower. Cancelling treasury share won't create cash to co and shareholders. But distribute it to shareholders will create cash flow to small holders like me. If BKawan distribute 1 treasure for 10 shares, it will be a fat dividends to me. :)

17/11/2018 21:26

sheldonDistribution of treasury shares = bonus shares - it just cuts the cake into smaller pieces. Hence there'll be a drop in share price. Even dividends per share will be much smaller because there'll be too many shares to pay feed dividends.

Share price trades at a relatively fixed multiple to it's earnings. EPS will be diluted and share price will also fall on that basis.

B. Kawan shares after all the painstaking accumulation over the years will be wasted if redistributed.

17/11/2018 22:44

Ciptadistribution of treasury share is not bonus issue. The total of share issued is not increase nor diluted EPS.

19/11/2018 09:57

sheldonActually the effect is like a bonus issue because what was once taken out of circulation is re-issued back to shareholders. The resultant earnings diluted because it is divided by a wider share base.

19/11/2018 16:50

CiptaAccording to EMH, liquidity will increase the market efficiency. As we can see recently delisted few companies which has low P/E and share price below NAV. Increase of EPS by cancelling treasury share may not transform to share price close to its actual value. However, distribute it as dividen (if 1 to 10 ratio) will increase its DIY and liquidity. It will create cash flow to shareholders as well.

Ciptapositive way to think: the management view the current price is underestimate the co value.

11/12/2018 14:10

sheldonAlso if the co which we own are buying, it's something like we're buying the shares ourselves.

11/12/2018 16:31

Choivo Capitalif you value KLK at market value, than yes, it is undervalued.

but i think KLK is way too expensive to begin with. I'll only buy it if it was 50% cheaper.

in which case, not that cheap anymore.

13/12/2018 18:47

sheldonChoivo Capital if you value KLK at market value, than yes, it is undervalued. but i think KLK is way too expensive to begin with. I'll only buy it if it was 50% cheaper. in which case, not that cheap anymore.

If you're interested in KLK, then buy Batu Kawan - better value for the earnings

13/12/2018 22:43

RwklSheldon, Choivo is saying KLK is way overpriced and Bkawan is not too far behind. Anyone going to the AGM.